F I N A N C I N G
An Update
Several financial institutions (FIs) have ventured into the area of sugar cogeneration due to its potential for "environmentally-friendly" power generation - a basic infrastructure need, using a renewable source of fuel. WII has covered information on these FIs in the past issues of the Cane Cogen India newsletter. In this issue, we have included updates on the financing norms of the Rural Electrification Corporation Ltd (REC) and Housing and Urban Development Corporation Ltd (HUDCO).
REC's Financing Norms for Bagasse-based Cogeneration Projects
|
Project Size | Normal rate of Interest (% per annum) | Repayment Period of Loan (Including Moratorium*) | Lending Norms | Eligible Agencies |
|---|
|
Up to 25 MW | 14% | 10 years** | Up to 75% (for the private sector) | Private/Public Sector Companies, State Electricity
Boards, State Energy Development Agencies,
Non Government Organizations, Government-
owned bodies, Registered Societies, Joint Sector
Organizations, Cooperatives, Independent Power Producers, etc. |
* As an incentive to borrowers who provide adequate default Escrow Cover, a rebate of 0.5% on the above rates will be available on the aforesaid loans/scheme, and the recovery for both interest and principal made through equal monthly instalments (EMIs) without disturbing the moratorium period. A 1% upfront fee of REC's sanctioned loan amount is required.
** Moratorium will be up to a maximum of 3 years.
For further details, please contact: REC, Core-4, SCOPE Complex, 7 Lodi Road, New Delhi-110003
Tel: 4365161; Fax: 4360644; Email: reccorp@recl.nic.in
HUDCO's Financing Norms for Bagasse-based Cogeneration Projects
|
Normal Rate of Interest (% per annum) |
Repayment Period of loan (Including Construction) |
Lending Norms |
Eligible Agencies |
|---|
|
14%* for up to 10 yrs of repayment period |
10 years |
Security as acceptable to HUDCO |
Sugar Mills |
| 14.5%* for 10-15 yrs of repayment period |
15 years** |
|
|
Promoter's Contribution: Minimum of 30% of the project cost; Loan Assistance from HUDCO : Up to 70% of the project cost
Application fee: 0.10% of loan amount; Front-end fee** : 0.75% of loan amount (an additional front-end fee @ 0.25% is levied, which is transferred to the R&D Account of the agency within a period of 3 years to be utilized by the agency as per R&D Fund guidelines of HUDCO)
* For schemes without provision of Government Guarantee, 0.50% additional rate of interest is levied
** Repayment in quarterly installments, including the moratorium period
List of HUDCO Sanctioned Bagasse-based Cogeneration Projects
|
Sl. No
| Name of the Scheme/ Borrowing Agency
| Installed Capacity/ Surplus Power (MW)
| Agency's Equity (Rs million)
| Soft Loan/MNES Subsidy/State Govt. Subsidy (Rs million)
| Term Loan from HUDCO (Rs million)
| Total Project Project Cost (Rs million)
|
|---|
|
1 |
Ryatar Niyamit, Mudhol |
12.3/7.7 |
30.8 |
50.3/27.1/19.3 |
121.9 |
249.5 |
| 2 |
Vasant Dada, Sangli |
12.5/6.9 |
98.2 |
89.4/48.1 |
164.8 |
400.5 |
| 3 |
Mysore Sugars, Mandya |
28/19.2 |
190.8 |
- |
572.6 |
763.5 |
| 4 |
Jeypore Sugars, Chagallu |
16.3/9.4 |
81.2 |
- |
189.5 |
270.8 |
| 5 |
Kukkuwada, Karnataka |
24/15.1 |
244.8 |
- |
571.0 |
815.8 |
|
6 |
Bellad, Karnataka |
14/9.2 |
128.9 |
- |
266.0 |
394.9 |
|
7 |
Chikkodi, Karnataka |
20/14.8 |
166.8 |
- |
389.2 |
556.0 |
| |
Total |
127.1/82.3 |
- |
- |
2,275.0 |
3,451.0 |
For further details, please contact: HUDCO, Core-4, SCOPE Complex, 7 Lodi Road, New Delhi-110003
Tel: 4365161; Fax: 4360644; Email: reccorp@recl.nic.in
